TLDR
- After taking a dip from its previous position at $2,000, Ethereum is now swirling around the $1,900 zone, having touched a low of $1,750 on March 11.
- Analyzing the charts reveals Ethereum nearing a significant resistance point which slopes downward on the 4-hour chart.
- In the initial phase of 2025, major Ethereum enthusiasts holding between 10,000 to 100,000 ETH have largely expanded their reserves by more than 12%.
- A group of analysts cautions that unless Ethereum can climb back to a $2,500 threshold, its value could possibly retreat to $1,060.
- As activity on the Ethereum network eases, it faces heightened competition from Solana and layer-2 networks.
Recently, Ethereum has been under pressure, dropping below the $2,000 mark and stabilizing around $1,900. This has sent conflicting messages among experts, with some noting patterns that may suggest a recovery, while others foresee further price reductions.
Back in March, Ethereum, the number two in the crypto world by market cap, stumbled to a low of $1,750, its weakest since November 2023, after previously trading above $2,000.
Post that dip, Ethereum has gained some traction, climbing back to approximately $1,900. It now faces a crucial technical crossroads while testing a key downtrend line on the 4-hour chart.
Clearing this resistance might pave the way for a surge toward $2,500. A TradingView analyst suggests that breaking above $1,885 could signal an entry opportunity for traders eyeing such a move.
Technical Analysis
The analyst identifies a potential upside target of $2,596 if Ethereum surpasses the resistance, advising a stop loss at $1,700 to mitigate risks should a reversal occur at this point.
Growing trading activity would solidify Ethereum's breakout with vigor, instilling hope in traders amidst the general market's cautious mood.
While technical charts show potential, data on investor habits tells another tale. As reported by Nansen, large-scale Ethereum holders are quietly boosting their stakes despite falling prices.
Early in 2025, those holding 10,000 to 100,000 ETH enhanced their portfolios by over 12%. Furthermore, those with 1,000 to 10,000 ETH also extended their holdings by roughly 3% this year.
This shift by major investors contrasts with retail participants, who are cutting down their Ethereum holdings. This divergence presents an intriguing juxtaposition against Ethereum's pricing.
Network activity on Ethereum Network activity has slackened, with average gas fees plummeting almost 50 times since early 2024, indicating lower usage of Ethereum's network capacity.
Part of this activity migration is to be observed on Solana and various layer-2 networks, prompting discussions about where Ethereum stands in the larger blockchain landscape.
Nansen’s analysis suggests Ethereum is battling on many fronts but might risk becoming a 'jack of all trades, master of none' compared to Bitcoin, Solana, and Celestia. This competitive strain deepens Ethereum's market forecast.
Some market experts aren't so optimistic and spell caution. They highlight a potential decline to $1,060 if Ethereum doesn't regain its position above $2,500 soon.
#Ethereum – Unbiased Analysis
ETH has notoriously difficult chart patterns, unable to breach the $4,000 range high multiple times in this cycle.
Following the recent rejection, prices have slid below mid-range, prompting further selling pressure. pic.twitter.com/iXkg8THiFy
— Mags (@thescalpingpro) March 18, 2025
This bearish scenario builds on Ethereum's failure to break past the $4,000 ceiling, a consistent challenge in the ongoing market cycle. Each setback has driven prices lower, currently sitting below the middle band.
In terms of its performance against Bitcoin, the ETH/BTC pair is struggling, indicating relative weakness. in Ethereum’s The pair has shown multiple breakdowns since mid-2024, with drops up to 25%.
Ethereum-focused ETFs in the U.S. have been experiencing a steady decrease since the year's start. Spot Ether ETFs' net assets fell by 9.8% in March, slipping to $2.54 billion.
Comparatively, Bitcoin ETFs edged down slightly by 2.35% to $35.74 billion during the same timeframe, reflecting institutional investors' waning interest in Ethereum over Bitcoin.
Currently, Ethereum is priced at around $1,923, marking a 27.81% decrease since last month. Its market cap remains hefty at $231.96 billion, yet the persistent downtrend indicates prolonged selling pressure.
The forthcoming weeks are pivotal for Ethereum as it navigates critical technical zones. Traders are vigilant, watching for either a breakout through the resistance, which could ignite upward momentum, or a fall, preluding additional decline.
